China Ouhua Winery HoldingsXKLS:5188 Gross Margin % is 5.39% as of Mar. 2026, which is 88% above its 10-year median of 2.86. The stock has 4 warning signs investors should review. Among 205 Beverages - Alcoholic companies, China Ouhua Winery Holdings ranks worse than 100% on this metric.
China Ouhua Winery Holdings (XKLS:5188) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
China Ouhua Winery Holdings had a gross margin of 5.39% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
China Ouhua Winery Holdings Gross Margin % Related Terms
China Ouhua Winery Holdings Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Beverages - Wineries & Distilleries subindustry, China Ouhua Winery Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
China Ouhua Winery Holdings Gross Margin % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, China Ouhua Winery Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China Ouhua Winery Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
China Ouhua Winery Holdings (XKLS:5188) has a Gross Margin % of 5.39% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on China Ouhua Winery Holdings and its competitors. This is 88% above median its historical median of 2.86. Over the past decade, China Ouhua Winery Holdings' Gross Margin % has ranged from 0.91 to 5.61. According to the industry distribution chart, China Ouhua Winery Holdings ranks #205 out of 205 companies in the Beverages - Alcoholic industry.
Is China Ouhua Winery Holdings' Gross Margin % too high?
China Ouhua Winery Holdings' current Gross Margin % of 5.39% is 88% above median its 10-year median of 2.86. Over the past 10 years, this metric has ranged from a low of 0.91 to a high of 5.61. The Beverages - Alcoholic industry median Gross Margin % is 42.29. China Ouhua Winery Holdings' value of 5.39% is 87.3% below this industry median. Based on the distribution chart, China Ouhua Winery Holdings ranks #205 out of 205 companies in the Beverages - Alcoholic industry, which is in the bottom quartile relative to peers.
How does China Ouhua Winery Holdings' Gross Margin % compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, China Ouhua Winery Holdings ranks #205 out of 205 companies for Gross Margin %. This places China Ouhua Winery Holdings in the lower half of its industry. The industry median Gross Margin % is 42.29. China Ouhua Winery Holdings' value of 5.39% is 87.3% below this benchmark. Historically, China Ouhua Winery Holdings' own Gross Margin % has ranged from 0.91 to 5.61 over the past decade. While the company's 10-year median is 2.86 vs. the industry median of 42.29, China Ouhua Winery Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Beverages - Alcoholic company?
The median Gross Margin % among Beverages - Alcoholic companies is 42.29, based on 205 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Ouhua Winery Holdings's current Gross Margin % of 5.39% is 87.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on China Ouhua Winery Holdings and its competitors. For the Beverages - Alcoholic industry, the median Gross Margin % is 42.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Ouhua Winery Holdings's current Gross Margin % is 5.39%, which is 88% above median its own 10-year median of 2.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Ouhua Winery Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Ouhua Winery Holdings (XKLS:5188) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.05, compared to a current price of RM0.05 — trading 10% below its estimated fair value. The current Gross Margin % is 5.39%, which is 88% above median its 10-year median of 2.86 and 87.3% below the Beverages - Alcoholic industry median of 42.29. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For China Ouhua Winery Holdings (XKLS:5188), the current Gross Margin % is 5.39% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
China Ouhua Winery Holdings Ltd is an investment holding company. The company, through its subsidiaries, is engaged in the production and distribution of grape wines. The company's operating segment is Red wine which relates to the business of trading purchased wines. The business operations of the company are carried out in the People's Republic of China.
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